By: masaccio Sunday July 26, 2009 10:30 am
The whiny rich and their toadies, especially the Blue Dogs, don’t want a tax increase. I say it’s time for them to pay back the enormous loans they have gotten over the last 30 years. Everyone knows that tax cuts in times of deficits are just loans. Eventually they have to be paid back. We can do it with tax hikes, or by running surpluses, or by cutting expenditures, but they have to be paid. Otherwise, we run up our interest expense, and crowd out private borrowers. For years, the US has been running huge deficits (except for a year under Clinton), all the while cutting taxes for the rich.
The rationale for those tax cuts was that rich people would use that money for investment in productive enterprise, directing it as only they with all their personal brilliance and their genius advisors can do. Then there would be all these new jobs in these new industries, ordinary people would have income and there would be capital gains and more taxes paid, so the tax cuts would pay for themselves. This absurd theory had the obvious outcome: staggering increases in the national debt.
...Read the rest at FDL and don't skip the links! Great stuff
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